September 23, 2010

Finland beef output seen to grow 7% by 2016

According to a study by Gallup Food and Farm Facts in Finland, beef production is forecast to grow by about 7% in Finland by 2016.

The number of suckler cows is significantly growing. The study forecasts there will be 358,000 cows in Finland in 2016, of which one fifth will be suckler cows.

Finnish food industry company Snellman expects the amount of beef required to increase to 12 million kilos by 2016. In two years, Snellman's slaughtering has increased by 1.5 million kilos. The 9.2-million kilos budgeted for 2010 will be exceeded. According to food industry company Atria, in the case of Atria, the increase in beef production will be seen as an increase in the number of dairy cows.

However, food industry company Saarioinen views the forecast with reservations. According to the company, the decisive factor is how meat producers and cattle farms can keep up with costs. The company expects meat purchases to remain at about 8 million kilos in 2011.

Also, food industry company HK Ruokatalo believes that the development of milk production will decide the outlook for beef in future. HK Ruokatalo expects a slight increase in production in the next few years.

It is, however, difficult to forecast what will happen in the market because the discussion on the environmental effects of food production, for example, focuses strongly on beef and may thus impact the situation even in the short term.